What type of problem is the temptation of imperfectly monitored workers to shirk their responsibilities
A)an adverse-selection problem
B)a lemons problem
C)a problem in which the employer is the principal and the worker is the agent
D)a problem of high risk life insurance

Question

Quizplus · Accepted Answer

This is a typical principal-agent problem where the employer is the principal and the worker is the agent. The worker may have an incentive to shirk their responsibilities if they know that their work is not perfectly monitored by their employer.

What Type of Problem Is the Temptation of Imperfectly Monitored